Interim Report Q1 2011 for Kancera AB (publ)

by | May 27, 2011

January 1 – March 31, 2011
This Interim Report covers the period January 1 – March 31, 2011. As Kancera was established on April 28, 2010, there are no historical comparison figures. All figures relate to the Kancera Group unless otherwise specified.

Q1 January 1 – March 31, 2011 in brief

  • Net sales totaled SEK 0.6m for the quarter
  • R&D expenses totaled SEK 3.9m for the quarter
  • Operating income was SEK 0.9m for the quarter
  • Income after net financial items was SEK 0.7m for the quarter
  • Operating income and income after financial items were affected by the release of negative goodwill of SEK 7m that arose as a result of the acquisition of iNovacia; this negative goodwill was recognized as revenue during the period
  • Earnings per share were SEK 0.06  for the quarter
  • Equity totaled SEK 38.1m, or SEK 3.95 per share, at the end of March 2011 and the equity/assets ratio on the reporting date was 72 percent
  • Cash flow from operating activities totaled SEK -5.0m for the quarter
  • Cash and cash equivalents totaled SEK 34.4m and in the Parent Company SEK 25.1m at March 31, 2011
  • New share issues during the period injected SEK 25.2m before issue expenses

Significant events in the first quarter

  • Kancera’s new public share issue was completed and provided the company with SEK 25.2m; expenses related to this share issue were SEK 2.1m in 2010 and SEK 1.0m in 2011
  • Kancera exercised its option to acquire iNovacia AB on February 17 for SEK 2.3m, which resulted in a group relationship and an obligation to draw up consolidated financial statements
  • Before Kancera acquired iNovacia, iNovacia sold its shareholding in Kancera for SEK 6m (SEK 7 per share); the sale related to existing shares and results in no dilution, but injects liquidity into the company
  • NASDAQ OMX First North approved Kancera’s listing on First North; the first day of trading was February 25, 2011
  • Kancera has developed new active compounds that target the energy metabolism of cancer, which have provided the basis for the first of two international patent applications planned for 2011
  • Results from Kancera’s leukemia project suggest that the active compounds developed may also be of relevance in the development of therapeutics against eight other blood malignancies; this will facilitate the further development and marketing of the project

Significant events after the end of the reporting period

  • Kancera has established a collaboration with the Northwestern University Feinberg School of Medicine, Chicago, USA to develop drugs to combat aggressive cancer
  • Kancera has signed a lease with the Karolinska Institute Science Park for specially designed drug discovery laboratories that will be ready for use as of September 2011

About Kancera AB (publ)
Kancera develops the basis for new therapeutics, starting with new treatment concepts and ending with a drug candidate. Kancera is currently running two projects, one to develop a treatment for leukemia and one project targeting cancer’s ability to generate energy in order to survive. Kancera also develops cancer models that allow the effect of the candidates to be studied before clinical trials are started. These models and techniques will be offered to third parties in order to further strengthen relations with the established industry and create future cost coverage for our own project development. Kancera’s operations are run at Pharmacia's former premises at Kungsholmen in Stockholm. Kancera expects to employ around 20 people in 2011. Remium AB is the Certified Advisor to Kancera.

For additional information, contact
Dr. Thomas Olin, VD, 46 73 520 40 01